Bitcoin ETF: the SEC postpones its decision

The Securities and Exchange Commission of the United States (SEC) postponed its decision to quote and trade a Bitcoin-traded fund (ETF) until September 30, according to an official document published by the SEC on August 7 … the market reacts to the downside with force. The SEC now has almost two more months to consider a rule change proposed by CBOE Global Markets Inc. that would allow the fund to quote.

“Accordingly, the Commission … designates September 30, 2018, as the date on which the Commission will approve or disapprove, or initiate procedures to determine whether or not it disapproves of the proposed rule change.”

The speculative movements, driven by a future cryptocurrency fund, will turn to losses after the SEC postpones its decision to approve said fund. The cryptocurrencies are no longer governed by their value of usability, functionality or security, but by 4 whales that apparently look forward to being able to quote their value in larger markets.

ETFs are values that track a basket of assets proportionally represented in the fund’s shares. They are seen by some as a potential breakthrough for the massive adoption of cryptocurrencies as a regulated and passive investment instrument, but the reality is that it is a more speculative and controlled instrument.

The official announcement states that the SEC has received more than 1,300 comments on the proposed rule change to list and trade SolidX BTC stock shares issued by VanEck SolidX Bitcoin Trust. According to the document, within 45 days after the presentation of a proposed rule change, or within 90 days if the Commission deems it necessary, the Commission will approve, disapprove or extend the period of consideration. The document says:

“Accordingly, the Commission, in accordance with Article 19 (b) (2) of Law 6, designates September 30, 2018 as the date on which the Commission will approve or disapprove, or initiate procedures to determine whether it disapproves of the change. proposed rule (File No. SRCboeBZX-2018-040). “

Last month, the SEC postponed its decision on the investment firm Direxion’s request for a Bitcoin ETF until September 21. The regulator also rejected an appeal by Bats BZX Exchange, Inc. (BZX) to quote and negotiate shares of the Winklevoss Bitcoin Trust, originally filed in 2016.

The agency cited the largely unregulated nature of the Bitcoin markets as the main reason for rejecting the application, stating that “when the spot market is not regulated, there must be significant regulated derivatives markets related to the underlying asset with which the Bolsa can enter a shared surveillance agreement.”